When couples get divorced, oftentimes, the financially dependent spouse will receive alimony payments for a certain period of time in an effort to help that individual retain their standard of living even after their marriage has concluded. In many cases, alimony is a lifesaver, though you should familiarize yourself with the new rules regarding alimony here in the United States. If you entered a divorce on or after December 31, 2018, alimony is no longer tax-deductible, and it can no longer be taxed as income, as per the Tax Cuts and Jobs Act. Please continue reading and speak with our knowledgeable Los Angeles divorce attorneys to learn more about how to report alimony income on your tax returns. Here are some of the questions you may have:
How do I report alimony income on my tax return?
To report alimony income on your tax return, you will have to enter the entire amount you received over the course of the year on line 2a of the 2020 Schedule 1 with your 2020 Form 1040 (as long as you were divorced within this timeframe). Additionally, even if you received alimony during the period where you were separated but not officially divorced, you will have to report this on your tax return as well.
Can I deduct alimony from my tax return if I was divorced before 2019?
If you were divorced before 2019 and you are still making alimony payments, you can still deduct alimony from your taxes. To do so, you must pay alimony either in cash or checks, you must no longer live in the same household as your former spouse, your divorce decree must clearly state that the payments you are making are alimony or spousal support, and you must have no liability to continue making payments after the death of your former spouse. If you have any further questions regarding divorce, alimony, or any other family law matter, please do not hesitate to speak with our knowledgeable California divorce attorneys today. Our firm is here to guide you through every step of the process ahead.
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Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.